kathleen: you are watching "daybreak: asia." annabelle: we are counting down to the market open in tokyo and seoul. haidi: australia has just come online, the top story is asian investors are headed for the worst day since february of last year. make a cap text bearing the brunt of the selling. >> we still have some ways to go. incoming data since our last meeting suggests the ultimate level of interest rates will be higher than previously expected. haidi: chinese stocks rally even as authorities back covid zero, with lockdowns to the plan that makes apple's latest iphones. reporter: and bloomberg is live

from the asia forum here in singapore. we have exclusive interviews plus the baron joey co this hour. -- ceo this hour. haidi: nhk, reporting a north korea missile has flown over japan. the north korea missile was separated into pieces, suspected to be made or long-range according to reporting at the moment. japan in the meantime warning its residents to take shelter from the north korean missile threat. these warnings have been issued as an alert for the miyagi and other prefectures. this comes as we see the missile being launched over japan to the pacific ocean, according to japan, towards the east sea. that's confirmation we have from the joint chiefs of staff from korea. there is now reporting that it

does look like a maid or long-range missile, according to reporting. this comes after the biggest barrage of missiles we have seen from north korea on wednesday under kim jong-un. one was ballistic, launched on wednesday, causing an air raid alert for the island in korea as well. we are now seeing further updated details of that north korean missile fired over japan to the pacific ocean, according to japan, with stage separation, according to some other local media reports. belle. annabelle: we are watching japan and korean defense stocks. we already saw them moving higher in the previous session. this is the outlook for the australian market today. we have the asx 200 snapping a three-day rally. unsurprising given the moves we had in the u.s. session. investors are having their chance to respond to what we heard in that presser from jay powell. specifically that we do see a

smaller pace of rate hikes. the peak could be higher than what markets expect. that's what we are seeing the move we are seeing in bond yields being led higher by that front end of the curve. more rate sensitive through your real -- three year yield. this is a fight to rein in inflation, happening of course around the world. we heard this morning from the new zealand central bank governor talking about the scale of the economic shocks that new zealand is facing, their global economies, he says for new zealand to have kept rates are inflation and that 1-3 percent target range, they would've needed to predict the ukraine war back in early 2020. in terms of the other markets, we are seeing japan also looking for a lower start. also that strength returning into the dollar, kathleen. kathleen: it just goes hand-in-hand with what we saw in the u.s. today. the stock market falling. the worst day for the s&p 500 --

the worst fed meeting day since january of 2021. let's underscore that, because traders and investors want into this thinking, we know what they are going to do. 75 basis point rate hike, month of november, they did, then signaled 50 basis points in december. that is not what happened. slower rate hikes probably moving forward. but a more restrictive fed may be needed. a higher terminal rate, and no pausing insight. what we got today is a 2.5% decline in the s&p 500. 3.5% for the nasdaq. apple and tesla down both 3.5%. qualcomm after the bell, a very disappointing outlook. down over 6% in after-hours trading. the negativity traders expressed, this uncertainty about where the fed is going in all this, feeding through to the

futures market. bonds -- of course, yields rose, but the two-year, up to 4.6%, we are seeing a continued selling of bonds, so yields rising. nymex fruit, up to dollars a barrel -- the nymex crude, up to dollars a barrel -- $2 a barrel. haidi: let's get the latest with our correspondent for asia. wall street, describing this as a double's bargain -- devil's bargain. [indiscernible] to the higher rate? >> the difficulty for markets is, they keep on expecting this pivot. since june, they have been

pricing for a slower pace of hikes going forward. at the same time, the fed keeps on raising the bar when it comes to where the terminal rate is going to be. higher and higher terminal rates and stronger and stronger rhetoric about how they are going to keep them there. very significant in the wake of powell's press conference. we once again had the euro-dollar strip just about taking out any bits on rate cuts for 2023. that removes a key support for those investors who wanted to buy bonds onyx petitions that rates would not go much higher and tech stocks on the seems were the basis. the sting in the tail is traders are now pricing for three rate cuts in 2024. that speaks to the level of economic damage now seen coming down the pipe, because

the fed is going to stay higher for longer. kathleen: if you want to run some more chills down your spine, a lot of people did not pay attention to the fact that jay powell said the fed probably does have to get the funds rate above the rate of inflation. that means he will need a big drop in the cpi to get to that. with that kind of outlook, what are you hearing from investors? do you stay out of everything? if you go overseas, what are people figuring they should do for now? >> there has been a lot of strong interest going into cash. cash rates are rising. there is so much volatility. that is a self-feeding spiral of pain for investors. because people are pulling back into cash, having to be more

careful about what they put money into, because they've got those wider error bars, expected volatility, so you get flashes of illiquidity, you get sudden moves. stocks and currencies initially jumped, after the fomc seemed to fulfill the pivot hopes. only for powell to say that is a hoax and send everything around, 180 degrees. is not like this is the first time that's happened and it's not like it's the first time. that's what investors are facing. he have to have a very thick skin as an investor to choose your mark and say, ok, never mind was going to go on over the next three months, we think this investment will pay off over the next 6-12. haidi: that is arguably what

investors are doing at the moment in chinese assets. let me start off with the first bad news. we are hearing the iphone -- foxconn, where they are located, they are under 70 lockdown. >> that's right. the number of covid cases in that city in that area where that iphone factory is tripled yesterday to about 359. the absolute number -- the absolute number is not high, but in covid zero china, that prompts a strong response from the government. the lockdown will be so for the next seven days. obviously that factory is already in trouble. they had been an outbreak inside the factory that resulted in workers protesting against the lack of food and being quarantined. we have seen a steady stream of workers walking out of the factory and leaving the production center. the knock on effect for apple

and the iphone and for suppliers is still uncertain. obviously not good news, in terms of the company. also in terms of the chinese economy. kathleen: social media posts are suggesting that covid zero is going to be eased. it is pretty clear that if there is an issue, it is not going to be. obviously this is not all over the country. but were -- but what are people supposed to make of this outside of china and inside? >> there's been a lot of speculation the chinese government will roll back some of the covid measures. that is what markets would love to see. the economic impact has been very pronounced, as we talked about. as we have seen so far from the government, not only in terms of action but public pronouncements, there seems to be no change when it comes to covid zero. the national health commission had a meeting yesterday to

discuss the outcomes of the party congress that just concluded earlier this month. they reiterated that covid zero is still in place and used across the country. haidi: garfield reynolds and john liu there. the korean missile passed overhead to the pacific ocean, we had heard reporting to had been separation of the missile. this comes after the biggest launches of 23 missiles on wednesday by north korea under kim jong-un, as pyongyang continues to express its dissatisfaction with these u.s.-south korean joint drills that are happening. let's go over to vonnie quinn. vonnie: which futures have tumbled as russia resumed its

participation in the green export deal. moscow says it received written guarantees from ukraine that the safe passage corridor will be used only for green exports. the united nations welcomed russia's return and the help of turkish president erdogan. the u.s. and the netherlands are expected to hold a new round of talks this month on restricting china's access to advanced chip technologies. sources tell bloomberg washington has been pressuring the dutch government to hold sales of a wider range of chip production machines to china. asml produces one-of-a-kind machines the u.s. needs to exert maximum pressure on china. a team of special investigators have raided seoul police headquarters following the weekend crowd crush that killed at least 156 people. other sites raided include the district police station near where the disaster happened. authorities also released records of frantic emergency calls, showing police had almost four hours of warnings about the growing crowd crush. ethiopia's government and

leaders of the tigre region have agreed to renew a cease-fire, raising hopes that an end to the two-year civil war may be in sight. representatives of the ethiopian government and the tigre people's liberation front signed the accord in the south african capital. a previous accord agreed in march lasted five months before fighting resumed. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ kathleen: still ahead -- the institute of international finance's tim adams joins us to dissect any rate hike path and what it means for economic growth in asia. up next, the baron joy ceo joins us -- barrenjoey ceo joins us to discuss their business and macro outlook. this is bloomberg. ♪

haidi: top leaders in business and finance are gathering today for the annual barclays asia forum in singapore. joining them is haslinda amin, with us now with the first guest from this event. has? haslinda: no shock edge from issues to discuss, the likes of a hawkish fed, geopolitics, let's get to our guest today,

barrenjoey ceo brian benari. what a surprise, 75, four in a row for the fed, you have to wonder if the rba is behind the curve, it pivoted perhaps we too soon. >> it was interesting, we were predicting it would be a 50 basis point move, it is a 25 move for december. the rba's the hurdle pretty high. in not taking it 50 basis points. the rate is now 2.5%. our production is 3.6% in march of next year. the next rise of 25 basis points in december, two more in february and march. haslinda: as you talk to your clients, the board, what is top of mind? is it still inflation, the fed? as a global economy -- is it the global economy? >> the exchange rate, the u.s. rate, where it sits versus the aussie dollar, that is very much top of mind for organizations with international enterprises. inflation, huge. it is interesting, watching the markets themselves, they are

finding it pretty challenging us to where that sits. haslinda:haslinda: you've had phenomenal growth in a very short time here with the question now is how do you fulfill the ambitions and the goals of the clients? >> great question. it's interesting, because our business that has just finished its first full financial year. what is interesting is we have been able to achieve that in a period of time starting from zero. the way you think about it is the business itself started from zero, built up over time, we've got ourselves to number one, we say that ruling into this year we had a good path line. we are very confident about how was a performance over this next 12 months. haslinda: m&a, pretty

interesting, with the record you had last year, what is the projection? what is standing in the way? >> that is interesting, timmy had gets to a whole thing of relative value, we are seeing a lot of that in the market at the moment. we are seeing organizations in a relative value basis saying that this is now a great time for us to be participating and doing roll ups. sure, the market is quiet, we expect ipo's almost down to nil, but we see a lot of it. people see that they can actually make a real difference. haslinda: you are hiring -- your hiring spree in australia has caused a lot of reports. are you done when it comes to recruiting, do you think? >> well, i'm not sure about the creative rebels, but we are sitting around 360 heads. that is a complement for us and that gives us the capacity to cover our fixed income, equities, and also corporate finance businesses.

we are fully stocked and we feel like we are in a good position as we will forward into what is very different conditions. the conditions that are going to benefit us from some of their newer businesses. particularly the fixed income business which only yesterday went live on the derivatives side. haidi: it is interesting because one of the things tha attracted a lot of those recruits was a hardbound culture when it comes to profit-making at barrenjoey. what other profit-making avenues and strategies do you see particularly as perhaps we enter more of a challenging set of economic conditions? do we see direct equity investments trading more off the balance sheet? >> well, for us, we are trying to facilitate the requirements for our clients at the end of the day. so the great thing about our relationship with barclays for instance is, if it comes to things like acquisitions,

borrowing, last year, barclays did the financing and respected i, so for us, with barclays come around financing, the debt capability, plus our m&a advisory business, we think we can -- answer the equities business, which is right up there at the top of the charts as well, we think we can actually respond to the requirements of our clients. they are all very varied and different. kathleen: i just want to jump in here, because it is very impressive. you must feel great about getting up to a strong start, it's not easy to jump in and to what you've done. you are forecasting a short and shallow recession. so you are going into a slowing financial cycle. m&a is coming off of oil, trading operations are not fully online. how are you going to handle that? was the biggest challenge now -- what's the biggest challenge now? >> i think the most important thing is that we have built the business on the basis of starting from dollar zero and on the basis of, we will move into challenging conditions.

for us, the most important thing now is actually taking our business offshore. for instance, international investors into aussie dollar equities, international investors into aud fixed income. and the other way, taking aussie investors offshore. for us that is all about utilizing the relationship we've got with barclays and doing cross-border. last year we had conditions which were very good. but we started from zero. this year we turn into the new year on january 9. plus the other two businesses which might be a little bit quieter compared to what it was at the close of the year. on average we expect to still achieve around those high numbers. kathleen: we are hearing you may be expanding to new zealand. can you confirm that? was your expansion plan? -- what's your expansion plan?

>> one of the things we saw is, it is really important that we have the capacity and new zealand, so we have struck a strategic alliance. they are absolutely a leading house in new zealand. 22 offices. 150-800 staff there. that helps us deliver to our clients and new zealand, the overall capacity for new zealand. in many ways if you think about it, it is barclays delivering international stuff to australia and us being able to deliver stuff and vice versa to new zealand. haslinda: i look forward to tracking her developments, brian. thank you so much for that. barrenjoey ceo brian benari with me here. haidi, back to you. haidi: lots more great conversations coming from the barclays asia forum throughout the course of the morning. later this hour, we will speak with marie freier.

stay with us. this is bloomberg. ♪

kathleen: now a quick check of the latest business flash headlines -- cbs reported an income that beat analyst estimates. resulting to the high interest rates aimed at curbing rising inflation. cbs' third quarter net income is $1.57 billion, a 32% increase from the year before. analysts on average had a $1.38 billion estimate. qualcomm, plunging in late trade after giving a for a weaker forecast than expected, due to the economic slowdown and covid lockdowns and china. it expect revenue will be 9.2 to 10 billion dollars on the fiscal first quarter, the average estimate was 12 billion dollars.

lenders led by a bank of america have kicked off a 2 billion-dollar high-yield bond sale to help finance a leveraged buyout of u.s. tv ratings business nielsen holdings. the banks already funded the deal in october using their own balance sheets. they are now using a rear window of opportunity to sell that debt to investors. coming up, fed chair jay powell says u.s. interest rates will go higher than earlier projected and take longer to get there. we assess the impact with the institute of international finance. find out what further aggressive rate hikes will mean for asian economies. this is bloomberg. ♪ xfinity rewards is a program whose sole purpose is to say "thank you" with experiences big, small and once-in-a-lifetime. sometimes it's about cheering hard enough to shake the stadium! sometimes, it's as simple as movie night

right here at home, on us. you mean the world to us. so we're bringing you closer to what you love. kinda like this. welcome to 30 rock! join xfinity rewards for free on the xfinity app today. our thanks, your rewards.

>> today everyone here is our

policy industry by .75 of one point. michael is iris truly committed to bring inflation back to the were 2% goal. if we do not get inflation under control because we do not tighten enough, now we are in a situation where inflation will become entrenched. we have the tools that we need as a result it will take to restore price stability on behalf of american families. it is very premature to think about pausing. we still have some ways to go, and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected. we have some ground up to cover, and cover it we will. haidi: federal reserve chair jerome powell there. let's get analysis with the ceo and president of international executive finance. read you happy with us. we talk about the magnitude of inflation being under initiated even by central banks.

where that something evidenced by jay powell's remarks and the statement last night, which seems to be a game changer in terms of the breadth of the challenge and the policies required to deal with it? >> great question, thanks for having me today. it is always a pleasure to be on bloomberg. the german said is resolved to bring inflation back down to 2%, he is a person who is determined to do that. their preferred inflation gauge is 6.2%, labor markets are incredibly tight. household balance sheets are in good shape, and rates are not binding. the fed still has a long way to go. haidi: when it comes to the risk to the global economy, fragmentation, decoupling or the terms and narratives that we are seeing grappling with for quite some time. we have china, which is no longer the cyclical growth element here. what is the biggest challenge, and what are the risks you are dealing with? >> shirt, overall global growth

will slow, we will probably have a recession in europe and we may be have a shallow recession into the united states, and china is facing its worst year of growth since 1996. the overall global outlook is not positive, although there are pockets that are positive. singapore seems to be driving, i am here this week for the fintech festival. that means disruptions and dislocations throughout the global economy over the next 24 to 36 months. kathleen: china, under lockdown in a very important city, and this is social media posts, they are going to open up, and everything we hear and see is that they are going to be lockdowns. what does that mean for china's economy, and when do you think this is going to change? >> i would hope soon, it may be by second quarter of next year. the new leadership is indicated they would like to find a path out of this policy. i do not how they do it in the short term, but it means growth

in china is going to continue to underperform. probably the worst year of growth since 1976, and they need to adjust how they think about chinese growth going forward. kathleen: you note to us that southeast asian economies are doing well, even with the growth headwinds, etc. when i spoke to the head of the philippine central bank at the imf last month, i asked him, are you worried -- do you think the fed should be hiking so aggressively? he said, yes, they have to get inflation under control. are you still of the mind that these patients being affected have ample fx reserves to support the reserve currencies as the dollar remain strong and maybe get stronger? >> i do. this region is really resilient, this is not what we saw in the

gauge of crisis 25 years ago. they have flexible exchange rates and good fiscal management, but rates are going to go higher, and 80% of commodity prices are priced in dollars, so if you are a commodity importer will face tougher times ahead. if you are a commodity exporter, you actually like these prices. haidi: when you talk about the issue of expansion of credit being still the best case for china, is the domestic demand scenario the same as we go into another at least six months of government zero? is there a chance that some of the damage was due to the property sector, the chinese consumer, and therefore to apple credit but not much take-up of that demand being entrenched? >> you are absolutely right, there is not of demand. there is a lot of credit availability in china and chinese banks have been provisioning for this cycle shift were quite some time. i think they are in good shape on their balance sheets, but

there is not a lot of demand. if you are in china and you have an outlook what you think a covid zero policy will be in place for one year or six months, i do not think i would be borrowing much either. haidi: the bigger picture, we seem to have this theme of the divergence between what governments. these are and central bank's parities are. do you think that policy risk is there elsewhere? >> markets are back and play in terms of determining what fiscal policy is going to be. we did see in the u.k. a fiscal policy rejected by the bank of england and rejected by the markets, so bond markets matter now. the bond vigilantes are back, and we will have to take that into consideration with every capital around the world. circumstances have changed. kathleen: speaking of the ok,

our minds are going the same place because the bank of england's meeting just hours were null and they are expected to do a 75 basis point hike. what are the challenges now? recession already there and inflation getting higher every month. >> you are absolutely right, the inflation in the u.k. is much higher than in other places, certainly much higher in the u.s. europe is going into a recession, we saw the rate hikes out of the ecb. they are going to hike rates. growth there is much more perilous than we see in other parts of the world, so they are struggling to find the right balance just like the europeans. kathleen: tim adams, thank you so much for joining us. we will go on to discuss of the impact of rate hikes on korea's credit market, which has seen one of its most rapid deterioration severed. annabelle is tracking this. sometimes little events, little

crises can get much bigger. annabelle: that is right, small cracks are to appear, and just a few months ago, this was one of the safest credit markets in the world, and it is deteriorated quite rapidly just in the space of a couple of months. because late september if you remember, we had the local developer of the legoland theme park defaulting on some of its obligations, and we also have a life insurance company delaying a decision on perpetual bonds, so this is something that caused the bond price to slump off of that. the reason it says it is doing this is because it planned to issue further debt into the market, but did as i to divide that option -- but it has had to delay that option, the height cost of refinancing debt. the company is going to go out with one of the options that is available to it to go for the core option instead. as i said, it has been a major

concern for the government there. we have seen the major credit aid package unveiled, $35 billion to shore up the distress in the market, but at the same time we are continuing to seek short-term credit yields rising, so this is how companies get refinance short term debt obligations or things like payroll. certainly a major concern for officials in korea. the bok grappling with its next rate decision just a few weeks away, whether it will go 25 basis point where it needs to go with more outsized hikes. haidi: we will turn to geopolitics and the region as well, japan warning residents to take shelter as a north korean missile passed over to the pacific ocean. we get more from our correspondent. this is the second missile that is phone over japan in this month. how big is the concern at the moment given that we have seen this record-breaking barrage of missile launches from north korea? >> right, all the military

drills by south korea and the u.s. have tended to trigger actions from north korea, the scale of the missile launch is is at an alarming rate, and i think the biggest concern is whether this will escalate further into a potential nuclear test, which would be if that happened the first in five years. news is developing as we speak, so we really have to monitor and watch what is going to happen. kathleen: do we expect any more aggressive, assertive reaction from prime minister kishida now? >> i think japanese government officials are expected to speak today in response to the missile launch is, but we really have to see how aggressive they will be in taking action. the south korean president yesterday has said it condemns

the north korean missile launches, because it comes to bad timing for south korea right after the disaster of the killing of about more than 150 people during halloween, so there is a lot going on, a lot of things going on in south korea, and they really have to see how south korea, u.s., and japan react in response to the barrage of missile launches. kathleen: a very hard time for everyone in the region affected by this. as we approach the cop 27 climate summit, a look at investments in renewable energy and infrastructure in asia. berkeley's -- barclay's marie freier joins us in just a moment. this is bloomberg. ♪

>> this is "daybreak: asia, i am vonnie quinn with the first word headlines. fed chair jerome powell is open a new campaign in the caused reservation. the reformation involves mother hikes. speaking after the fomc raise rates by 75 basis points for a fourth straight meeting, powell said there is still some ways to go before policy is restrictive enough. >> i have said at the last two press conferences that at some point it will become appropriate to slow the pace of increases. that time is coming, and it may

come as soon as the next meeting or the one after that. no decision has been made. >> turned out was because were -- called for vigilance to prevent control of the pandemic and to firmly idea to the policy of government zero. -- the comments, as china orders a seven-day lockdown of the area around the main plant in junctional -- zhengzhou china and pakistan have agreed to launch a real project. the office confirmed the deal after a meeting. it comes as china moves to slow some of its lending due to growth concerns. the project involves upgrading an 1800 kilometer colonial era track. the u.s. says it will work with allies to remove iran from the warren commission on the stance of -- of the status of women. the move seeks to punish tehran

for a particular protest. the u.s. has imposed sanctions on iran's so-called morality plays. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. kathleen: thank you. let's cross back to barclays asia form we are standing by with our guest runs very important part of bank efforts. >> it is important but it is a challenging environment. as we count down to 27, let us get to marie freier at barclays. we talk about how important it is, yet when you look at the regulatory environment, it is getting tougher. i was that impacting sentiment,

the investment part of it as well? >> both corporates and investors, most of it is about disclosure regulation, so more data and regulation that the market needs. i think it is necessary. it is part of this collaboration and partnership we need between regulators, governments, as well as the private sector. we need to change the guard rails, we need to change the operating environment and the incentive, in one part of that is better data, enhance regulation what we are seeing globally around more exposures. >> is a true greater regulation is coming and that will add to costs compliance cost and so forth. i will that play out? >> i think there will be a message period. i think we will get global consensus around regulation, at least interoperability of regulation. it has become burdensome for market participants as well. someone mentioned to me years

ago when we wanted to put in place normal financial regulation, financial disclosure regulation, and in the end no one would go back now, so ultimately it will become part of the normal course of doing business. >> what did you make of the commitment -- because a year ago everyone was going all out, waiting to gold, but a year on it is a different environment. that transition to clean energy is more difficult than people thought. >> the backdrops change, we think about the geopolitical situation we are raising globally and macroeconomic on the thinking about energy prices and commodity prices, that does make it harder, not least of which were policy makers were thinking of electric for their society. we obviously still need to deal with it. there is an interesting piece around balancing narrative concerns as well as staying the course on the commitment to energy transition. we have made these amendments,

whether at the sovereign level, the corporate level, and is all about delivering, which means strategies, plans. what are you going to be doing by 2025? 2030? not just 2050. >> we have seen asset managers reducing the number of years you funds in the wake of stricter crackdowns on greenwashing. is that causing you to rethink some of the ways these strategies are implemented, because we have so many pledges by funds and corporates and we know a lot of that is not transiting into climate action. >> good point, if we are thinking about asset managers, thing have been launching very different types of products and funds. folks in asia are hearing about the regulation in europe, that has caused headaches. the content it is to say we want to make it easier for investors to select funds that reflect their priorities in terms of

investments and the kind esg and impacted that they want to have through their investments. in practice, there are some teething issues. i think we will see evolution in the market, but also continue to see innovation and new funds and strategies being large to express the desires of those under like investors as they want their money to be interested, looking at esg and impact in particular. kathleen: our team did a terrific story right up your alley, polluters and emissions finished with the aid of controversial accounting. it is about the ghost of market-based accounting, which of the story says allows company to say they are running on green energy when they are not. have you come up against that? this is been a question in the esg space for some time now. >> i have not seen the story, so i cannot comment specifically, but i would say accounting is critical. we talked earlier about

disclosure and disclosure regulation. how does it measure these things? a lot of corporates are still trying to figure it how do i put in the right processes and systems in place and how do we disclose them and how are those disclosures used in documentation, etc.? for sure still some teething pains. >> we have some concerns about making green projects more viable economically and what needs to be done? how should governments located? >> that is fair, not always the commercial incentive for private capital to step in. if you want to unlock that there is something about de-risking certain projects. it is to say things like blended finance step in? can we secure ties and use a portfolio approach to make it easier, do you invest some of these investments for the private sector and make it

easier for them to step in? >> how about the role ofntb's injuring all of the projects they invest in our green. are they doing enough? >> institutions have used their influence and make sure they are having their voice heard. i do think broader global asset earners have been on the forefront of a lot of this and driving a lot of change we are seeing in the market. >> just one final question before we let you go. counting down to 27, realistically, what can be achieved. what do you hope to hear? >> i hope to hear in many ways most of the same. the most important thing is we do not backtrack and we continue to see consistent progress in moving forward. i would rather see incremental consistent steps toward rather than any backtracking. >> a pleasure, great insights.

thank you so much. of course we have plenty more ahead. and to get back to you for now. haidi: haslinda amin there and she will be running this more exclusive conversation throughout the course of the day including a chat with the asia-pacific bank's head in the next hour. this is bloomberg. ♪

kathleen: i hong kong monitoring authority raising its base rate to a fresh 14 year high of 14.25%. it will have immediate effect. this is typical when the fed is raising rates that the hkma goes along with them. we saw quite a reaction in stock markets in the u.s. and at some reaction to a certain extent in asia. this is quite another follow from them, cost of funds suppressing the record 3.57% last seen during the 2008 global financial crisis. they have been doing this, raising the rates in moving the policy rate up and down in lockstep with the fed since 1983 so they can maintain their currency back to the dollar, and they are doing it again today.

haidi: this coming at a time when higher rates are causing more downside pressure for the hong kong economy already struggling over weak demand, covid lockdowns and other pressures. the likes of hsbc could revisit their main lending rates in light of the hkma decision. they hike their primates -- prime rates for the first time since -- let's get a check of the latest business flash headlines. a daily shipping giant has had work as for the global container market while flagging recessions in europe the u.s.. the cl told us russia's war in ukraine and the resulting energy prices are getting consumer confidence and demand. maersk is coming off several courses of certain profits. -- surging profits.

>> we are down 7% for the first time compared to last year. we see the effect of the slowing economy, the war in europe and what that is done to consumer confidence. all in all mobile trade is moving backwards this year. haidi: several crypto etf's and australia are said to be delisted, becoming the latest casualties of this there -- of this year's crypto route. in april we saw a company becoming the first form to issue etf's in australia. the market opening in seoul is next. this is bloomberg. ♪

kathleen: this is "bloomberg

daybreak: asia." we are counting down to measure -- major asian market opens after -- 2.5% drop in the s&p 500, the worst fed day since january 2021. waiting to see how it feeds through to asian trade. haidi: it continues once it comes to treating in asian assets. we saw the rally continuing despite the news of a city being locked on for another covid outbreak and health authorities refuting this idea that they will be steering away from covid zero. let's take a look at how markets in korea opened given that we had a missile test on top of all of this. shery: certainly a lot to be watching as we get into the opening of south korea, japan is shut for culture to indecision. no open of cash treasuries until london comes online.

it does take a few minutes for us to start seeing life pricing for the kospi and cossack index -- kosdaq index. this is a reaction, powell and his press conference highlighting not only will the fed to be sticking with a smaller pace of rate hikes moving ahead, but what is most important is the peak for rates could be higher than what markets are expecting. kospi down 1.7% on that tracking those moves for the u.s. session. not only the first -- worst fed day since january 2021 but the first time we are seeing the u.s. session dropping more than 1% in back-to-back fed meetings since 2008. we are keeping an eye on the kosdaq, under the particular mover will be in social media stocks. elon musk planning to eliminate half of twitter jobs, so social

media companies want to watch. certainly we did see rate moves affecting big tech in the session. take a look at how australia is trading, at one hour into the session for the has -- asx 200. snapping a three-day rally, having an eye on what is happening in the bond space. treasuries repricing for the terminal rate to be higher than the markets currently see it and oil more sensitive to those goals for more fed rate hikes. given that we did see traders focus on supply tightness but a little more information about that breaking headlines. haidi: exactly, and we have heard according to people speaking to bloomberg that elon musk is planning to eliminate have of all twitter jobs and a cost-cutting drive. the new owner of twitter is aiming to cut jobs beginning on friday. remaining employees will be asked to return to the office. this is 3700 jobs, half of the

company's workforce following the acquisition according to people with knowledge of the matter. the news is aimed to be delivered to staffers on friday. we are also hearing that the team of advisors have been weighing over a range of scenarios when it comes to job cuts. we had been hearing 75%, which he then refuted. they're hearing some of these other policy changes may come into effect, that the terms of headcount reduction could change. laid off workers will be offered 60 days of severance pay according to two people club spoken to us, and he is under pressure to slash costs, which he says the business had been overpaying. he agreed to pair that share in april just as markets tumbled. we are hearing reports that the monetization drive, the

verification sale of twitter accounts could begin as early on monday. lots of changes, but twitter employees have been bracing for layoffs and structural changes since elon musk took over and fired the top executive team. we will get you more on that as details come to us. our chief asia economic correspondent enda curran is with us and our lives contributor garfield redness -- garfield reynolds is here with us as well. in terms of the game changer that we had from fed chair powell in terms of language, how do you characterize that? >> in a lot of ways, jerome powell did not change too much about what he was saying. the problem was that he was expected to change. the markets have been lining up so that there would be a privet -- pivot, powell and the fomc would stop rate hikes shortly

after they started them and they would be looking to lower the cash rate by next year. instead, jerome powell came out and said, no, just because we are slowing down does not mean we are going to have that nice, easy plateau for everybody, and we are going to risk over tightening rather than under tightening because we are worried about inflation. the bait and switch it has been called, because fomc signal lower pace, jerome powell said exactly what that meant. that set off volatility, that is also caused a rapid repricing. we are talking about terminal rates being the key thing. three months to go to futures curve with seeing a terminal fed rate of about 3%. now with the fed rate at 3.75% we have got the terminal rate being seen as 5% or higher. there are growing because it

could go as high as 6%. there were some people naming that earlier this year and being told that is ridiculous. that will take the markets. what do you know, the markets are tanking in response. kathleen: if you look at the dot plot from september, with jay powell saying come december we could see a change, reflecting the expectation of a higher terminal rate. what does this mean for asian nations who have had their currencies hit, who are already grappling with china's slow down and so much more. does this pile on, or are they all raced for it? absent or banks in this region brace this in? >> i think that they have been hoping for a pivot, a moment where the fed will give a definitive point where they will slow things down, and that would take pressure off of the dollar and by extension to relieve a

lot of pressure in the asian region at least on the currency volatility side of things and on investor flows. you can argue about whether or not that moment has arrived with the fed. it is hard to call it a pivotal moment for the dollar. by extension there will be ongoing pressure on central banks across asia to keep raising rates not just because of the inflation story but to try to protect their currency and lean against it investors pulling their money up and going back to the u.s. the case of japan is an obvious point. if any bank once i turn in the dollar it is japan. haidi: enda curran and garfield reynolds, let's get to other top stories, top held by the internet saying a zero approach remains as it approach to fighting.

our mobile business managing editor joins us now. it goes just to this year hope and desperation for a lot of these money managers to deploy funds hoping that we have an exit at least insight. >> it reflects the desperation really. there is not any concrete indication that they are pondering an exit anytime soon. we are coming into winter in china. vaccination levels particularly among the elderly it would be bad for them to open right now and without natural immunity. there are not those indications on the ground as you said. we saw a lockdown in junctional -- zhengzhou around the biggest iphone factory in the world. it is apparently seven days in this stage, but lockdowns tend to get extended in china.

the worst of them being the two month lockdown and shanghai earlier this year, so all eyes watching on how that impacts the production out of that factory there, which is very key not only to the iphone overall but to the new iphone that apple is pushing out. kathleen: does this show that china's government has not changed its stance on covid zero at all yet and that they are still prioritizing not letting it spread over the need to start opening up so the economy gets more room to breathe? >> it is very hard to doubt what is going on behind the scenes. always a lot of tea leaf reading when it comes to china. the official rhetoric has not shifted. it is very likely the national health commission statement that was put out was cognition in response to market speculation

that we saw yesterday and the day before, but it does hew to the line they have been consistently making that covid zero it remains their policies, that officials need to resolutely adhere to that policy and they need to be suppressing outbreaks. so no shift in the rhetoric there. whether they are starting to plan or look at what they need to do to reopen behind the scenes, that is a key question. haidi: because it is possible that they would meet and look at the data from hong kong, other places that have opened up. we are now watching march as potentially -- >> the experts that we speak to, scientists and economists, that seems to be the consensus. the national people's congress when the new politburo and other leaders will be put in place is a potential moment for when they could signal easing, but you do imagine a country with this scale of china, the position

that is in, so isolated globally, is hard to think that there would not be sensitive planning behind the scenes. i would say it xi jinping has emphasized china is going its own way. it does not mean that they will follow the track of singapore or australia or the u.s. when it comes to reopening. we could see something completely different. kathleen: breaking news, not too surprised, the philippines central-bank has now set that it is going to mess the fed's 75 basis point i-20 meets on november 17 according to governor medalla. he told me an interview in september at the imf that, in fact, he was figuring that they would have to raise the key rate 50 if not 75. she was supportive of jay powell and the making this more

aggressive move because the fed has to get inflation under control and furthermore that the philippines government as plenty of reserves to support their currency of needed. he is saying they are ready to take actions to take cpi back to target. they're going to be vigilant and moderate risk to the inflation outlook, strong commitment to price stability. they're going to match the fed hike, 75 basis point hike at the november 17 meeting. when i spoke to them at imf he said it was not a done deal, but it looks like they talked ahead of the meeting. bloomberg has learned elon musk plans to eliminate 3700 jobs at twitter, aft of the company's workforce. ed ludlow broke the story. whatever hearing? >> sources are saying that is the plan, the layoff list will be shared on friday. we reported over the weekend

that managers across product teams had been asked to drop a list of headcounts to be reduced by 50%, and musk is making his mark on this company. haidi: is this an indication that clearly elon musk was pressure to do this deal? he feels like he has overpaid for it and given the market volatility. one of the measures of receiving -- what other measures are we seeing? >> elon musk is not wasting time . the new version of twitter could rollout is in is on monday, and with the eight dollars a month

you get verification, together idea is that -- but the other idea is musk is giving blue users the preference. we are also hearing the edit button exclusive to twitter blue subscribers could be rolled out for everyone. i am currently a twitter user, i am not a twitter blue user. what we are hearing is elon musk and the team he is gathered could have that rollout as soon as next week. haidi: never a dull moment, ed ludlow covering that when it comes to potentially half of twitter's workforce to be cut. let's get you to vonnie quinn. >> weed futures have doubled as russia resumed its participation in the black sea grain export

deal. moscow said it received written guarantees from ukraine that the same for -- safe passage corridor it would be used for grain exports. the u.n. welcome's attorney -- return and help of turkey' as president everyone. the u.s. is expected to hold new talks this month on turned out get access to chip technologies. asml produces one of the current machines and the u.s. needs it on board to exert maximum pressure on china. a team of special investigators has rated seoul's police headquarters following the crowd crush that killed 156 people. others include a police station near where the disaster happened. authorities released records of frantic calls and increase warnings about the crowd crush. global news 24 hours a day, on

air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. kathleen: as a jay powell opens and new phase in his campaign against inflation, we will get more from our guest charles copper. we will take you to barclays's head of asia-pacific. this is bloomberg. ♪

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haidi: the barclays visual form is underway in singapore. let's get straight back to the event. as haslinda amin is standing by with the next guest. what a day to be having these conversations. >> we are super excited to have our guest, barclays had of asia-pacific. good morning. talk about headlines including the fed raising rates 75 for the fourth time. what is the mood out there? what are your clients thinking about? >> thank you so much for having me today. it is wonderful to be at the sidelines of the barclays asia for them.

hopefully there will be a great deal of insight for many of our featured speakers. coming to your question, just a shutout to our chairman who actually called the fed's most last night, saying the market will be surprised by the posture the fed takes. and what it does mean for asia and asian currencies is that currency is likely to remain under pressure, and consequently regional interest rates as well need to respond. they will remain pressure on asset prices and therefore concern on how economies respond in the near term. so far asia has navigated this quite well. this adds another layer of pressure. >> we talk about ripples from u.s., europe. how might that play out in the

market you are operating in and doing business in? >> there is no decoupling more. there will continue to be an impact in the markets that we operate in, and we are witnessing that impact. the story for each of our markets is somewhat different. as navigated the pandemic from a macro economic perspective well. last few months there has been an impact on interest rates and the currency, but in relative basis, both european and regional currencies. it is a story that is case-by-case and depending upon which restriction you are talking about. >> when we spoke to you about one year ago you talked about an asia revival.

in the likes of china, india, japan, which is a key market for you. is that still intact? >> absolutely, we have had three very strong years. it has validated the strategy that we put in place. in 2018 after a short period of consolidation and it has given us the confidence to stick with it through the strategy that we set up through various market cycles. we continue to be very constructive on asia-pacific. >> are you where you were to be? >> it is a story of continuous progress while keeping an eye on the macro environment, and while the current environment makes us along with many of our clients cautious, the secular change in

the long-term change of our ambition and desire and achiness to build up to continue to serve our clients has not changed one iota. >> how are you assessing china? a lot of investors, ceos are looking to the party congress for direction. the signals are clear, there is no pivot. how are you assessing the opportunities in china? >> there was a great deal of uncertainty leading up to the party congress, and what has emerged is clarity of the direction that china has set. it is obviously smart to provide cross-border services for our global client into china and the ability for chinese clients to go offshore, and it is our job to work with them to analyze the

current situation, develop a strategy on how to respond. we continue to remain interested in china. i think as a dialogue with them develops we will continue to work with them. >> is there a sense that you would ramp up or pullback resources in terms of china? >> we will respond to the market environment and what our clients are saying. our job is to be there for our clients. >> we are already in november looking ahead to the next 12, 24 months, what do you see as the biggest risks? >> the developments in russia and ukraine are clearly an area of concern not only for me geopolitical perspective and an economic perspective but also from a humanitarian perspective. something that i think all of us

will wish for in terms of food security and energy prices, i am not saying anything deeply insightful here. those are concerns not only for me but should be for all of us. there is a tremendous you military crisis there and consequently on the back of that, each and every one of us are quite privileged to see on a daily basis. >> you talk about how clients are more cautious when you look at investments and how they are positioned. what would it take for risk appetite to come back? all of the above, all of the good jobs to be rectified? >> a clear sense of rejection. you do not need rates to go back sharply lower, but i believe that the hiking cycle is out of control.

if they see on the horizon some form of relief, whether it is for energy prices or inflation, food inflation and food security , i think rates will return at that point. >> the response from central-bank in asia will be key from that 75 move we saw from the fed overnight. our central banks at risk here of being behind the cough now? >> at this point. i do not think so. the world is quite different ways from 1998 and previous hiking cycles, but one of the things we in the financial market teaches you is you cannot really ever predict for too long . there is so much uncertainty out there. at this point i do not believe

they are materially behind the curve. >> which markets do you think will help drive growth? >> japan as the biggest market in the asia-pacific, so that is key to our franchise. india is a big opportunity as i talked about on a value basis. it has been less impacted through this cycle. the fundamentals of india are very compelling. australia, a couple of years back we established a joint venture with barrenjoey, and then of course we are selling in singapore. i did then china is too big to ignore. i guess what i am saying by going into -- around the entire

region is it is so interesting and important for different reasons, and actually going back despite the macroeconomic environment and very constructive on china. >> we have to leave it there, great insight. kathleen. kathleen: plenty more coming up from the barclays asia forum in singapore. this is bloomberg. ♪ (annoenough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it,

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haidi: we are getting trade numbers out of australia

pressing bloomberg, september imports unchanged month on month. the estimate was for a gain of 3% there, so missing estimates and slowing from the 4% gain we saw in august, exports seeing a 7% gain accelerating from the 3% we saw in the previous month and a big beat on expectations. when it comes to the trade balance, we are left when it comes to a trade surplus of $12.5 australian. estimates were for a surplus of $8.75 billion. we will start to see the impact of the performance and iron ore coming through entry numbers, one of the worst performers in economies this year and that route is more likely to continue into the economic revival of china. it does not bode well when it comes to the aussie dollar as well as export numbers going

forward, but for the month seeing a pretty impressive beat particularly when it comes to the exports number and a bigger than expected trade balance. kathleen: thank you for that. i want to look at some of the pmi's, purchasing managers index is closely watched. let's start with singapore, purchasing manager index, s&p global singapore bmi moved up to 57.7, at 57.5 in september. another sign singapore's economy continues to move along shielded from forces that have her other asian exporters. as for hong kong, let's move on to that one as well. what we see is a little bit of recovery after several declines in a row, or at least to the worst level. last month, 48.0, october pmi

back up to 49.3, and the economy has been under pressure, the slow release of covert restrictions slow the economy down. they had a decline, a contraction in growth in the third quarter. no surprise indexes are still struggling to. interesting though, at the same time hkma has had to raise the key rate again, 75 basis points to match the fed, probably the last thing they need our higher interest rates but they have to keep the dollar peg. we will see of some of the biggest banks will jump on the bandwagon and raise their lending rates as well. now we want to take a look at what the markets are doing in light of all of this, and the big event today, the federal reserve doing the 75 basis point hike, s&p 500 down, kospi following through on this with the loss of 1.5%, and the won is

getting weaker again. that is not a surprise either given that it is been one of the worst performers this year. the dollar strengthened not a lot but continues to strengthen after the fed rate hike and we can see aussie socks and new zealand stocks are lower as well. australia taking it on the chin, more than 2%. new zealand not as bad. let's move on to first word headlines. >> north korea is fired at least three ballistic missiles thursday prompting an alert in japan that one may have flown over its territory. the launches follow a records with a barrage from kim jong-un's regime of 23 missiles. north korea threatened to take powerful measures if the west held military drills with partners including south korea. china positivist national health commission is called for vigilance to control the pandemic and firmly adhere to

the policy of covert zero. it is among the first official mark since anonymous social media posts came to beijing. the comments came after china ordered a seven-day lockdown around a main plant. the u.s. says it will work with allies to remove iran on the commission for the status of women. it seeks to punish iran following that of a woman flooding -- flouting strict islamic dress codes. ethiopia's government and leaders of the dissident tigray region have agreed to renew a cease-fire, raising hopes that an end to the civil war may be in sight. representatives from the ethiopian government and the people's liberation front side the accord. a previous accord signed in march lasted five months before fighting resumed. global news 24 hours a day, on air and on quicktake by

bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn. this is bloomberg. kathleen: more now on the fed's fourth jumbo rate hike and its signal of a higher peak rate sometime next year they are thinking. let's bring in the former philadelphia ahead president. markets were disappointed because they thought this reference to accumulative tightening meant the fed was going to get or dovish, but instead jay powell made it clear that any thought of pausing rate hikes is premature. they have got high inflation and red-hot labor markets. is the fed on the right track now? >> i surely think it is. markets tend to be looking for any excuse to believe that the fed is going to stop raising rates for pivot, and it is just not ready to yet. the economy is still pretty

strong as jay made it clear to the, and inflation has not begun to fall. so i think people were reading in to the statement, at least some of the financial markets seem to agree, what they wanted to see as opposed to what the fed was saying, and jay clarified that quite clearly. kathleen: what do you think restrictive will end up being? one of the questions he was asked is if the fed, he thinks they have to get the funds rate above there key inflation to gauge in order to say it is truly restrictive policy, it restrictive enough to bring down inflation? how is that going to work out in 2023? >> i think they have a ways to go. if you look across the treasury

yield curve for any duration you pick, inflation is higher than the yields, so we have negative interest rates still, and that is in no way would we consider restrictive policy. personally i think we might see between 5% and 6% before this is over, and maybe even higher. it depends on what inflation does, how high they have to go. but they know they cannot just stop, because it will not work. historical experience teaches us that. they do not have much choice if there were to commit to lower inflation. haidi: there is so much pressure for him to pause or give the indication of pausing. i think that is what was so

groundbreaking in away from the remarks that we heard overnight. how do you deal with the labor market. has the incredible magnitude of the strength of the labor market surprised you? >> yes and no, it has remained strong. it is not surprising given the multi-effects of the pandemic and the stimulus tag that the fed and fiscal policy has provided to the economy, so the labor market remains very strong. really no signs of slowing down. there may be some slow down yet to come, but it has not arrived as of yet. and i think the fed realizes that, but it also realizes the reality that the slow down may come, and that is when their task is going to be difficult. it is when the slowdown comes

that we find out whether the fed is as committed to restoring price stability as its language for the last two months as indicated. [indiscernible] haidi: yes, we talked about the immense critical pressure, especially pertaining to potential job losses, but he has acknowledged the path to a soft landing is getting narrower. is there a way to get out of this without a recession? >> i do not think anybody knows the answer to that. it certainly could happen. i think what jay was saying, correctly so, even the way that inflation as been going and it's like of decline or falling is making that path a lot less light, and i think he was

indicating that today. unless they begin to see inflation breaking in a downward direction, they are going to have to continue to apply restraint. they have got to get to restraint first of all, then to apply restraint until it does. i think jay aptly described it as the window of the dry path f or a recovery without serious slowing and perhaps increases in the unemployment rate. that window is really beginning to narrow. kathleen: do you get any sense that there may be just a little bit of two camps developing within the fed, the cap that insisted about the comments of cumulative tightening. the fed paid more attention to cumulative tightening. markets thought they're going to be less aggressive because they

have done so much, versus those saying we just have to keep raising rates until we actually see inflation falling, even if we see this economy slowing down and the job market getting weaker? >> i think the language was misinterpreted. it is always about cumulative. it is always about how high do rates have to go to provide the restraint that is needed to bring inflation down? i think jay was very clear on that today. the question is not how fast. the reason it is fastest because the fed waited too long to start this process. they still have to get rates up to a level that applies restraint, and it was very clear that is necessary and he alluded to the fact that that means rates have to get above -- well

above the rate of inflation and that the fed will keep raising rates until they get there. there is uncertainty about where that number is, and that will be shaped over time as they continue to raise rates and how inflation and the economy respond. but i do not think there is any question that rates have to go up. i think they have to go out -- up a fair amount yet. in my view there was no new information in the statement, and it is pretty consistent with the way the fed views this, and that is my interpretation. haidi: charles, always wonderful to have you with us. let's get a check of markets. annabelle: we are 30 minutes

into the trading session for korea, japan shut for a public holiday. so far the session is looking at risk of every single sector in the red today. unsurprising given that only moves to the limitations, really the reaction investors are having to jay powell's press conference and you were just discussing the details there withdrawals. this understanding that not only will the fed to be hiking for longer bringing inflation, but also the peak for rates could be higher that where markets had perhaps been anticipating, so it is a broad selloff, but materials reading decline. look at movers in more detail, it is not just about recession risks, how that ways -- weighs on a stronger dollar and in turn feeds into weakness, but also we are having a reaction to china. given that anticipation we have been discussing about china

pivoting away from covid zero in the coming months. we understand at least one china's healthy body that is not the case, strict protocols are here to say -- stay. look at another one moving, the tech and focus, we had to move in treasury yields overnight that weighed on big tech in the u.s. session. kakao cop meeting == corp leading losses. finally keeping movers in korea going as well, defense stocks, one of the few moving today. that is unsurprising given the developments in north asia this morning. we understand north korea as fired at least three ballistic missiles, and one of them long-range and close enough to japan to spark an alert. kathleen: quite an event today.

let's move on to what is coming up next, and that is a lot more on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: counting down to the start of trading and china and hong kong while the rally in u.s. listed stocks continued in new york is a fresh set of the verified social media pace --

post sustained hopes of reopening from covid zero. we see hope spring eternal even as we see the lockdown of zhengzhou and health authorities confusing in the idea that there is anything less than complete adherence to covid zero. >> i think what has happened this week is traders intranet really got a reminder of how one-sided the market was. sentiment was so bearish after last week, dramatic declines to be had. the hang seng enterprise index closing on monday at the lowest since 2005. that is an incredible opportunity if we do get this kind of shift, and even boomers, the fact that the dining -- timing of it after the party congress in the fact that the documents were so detailed was there was believability amongst traders this can be true. it is all about hope, but also about positioning.

being short this market is and could be dangerous. when it does move higher, it can move very quickly. kathleen: does that mean this will be something over time if we continue to get limited smaller lockdowns like the one around the foxconn plant? they have other plans apple can use to build their phone. for traders or they just going to have to put this to one side look at other things, another bright spot in the property crisis? >> i think it is an incredibly difficult market to trade right now, because it's who said, covid zero is not something that will just go away overnight. it is not a one-time event, like for example a fed rate hike. it is something that will be gradual, something that you have to take the time to read the signals, and that is incredibly difficult if you were not in the market every single day. looking at the state media, if there is a change in rhetoric,

if it starts to seem at least the official line is that covid zero is no longer scary thing, that is one thing. hong kong was in an overnight change, the roadmap here was the government said we would adhere to covid zero, but on the ground things got easier, movement of people got easier. you have to look at the incremental shifts, and trading in that kind of market is incredibly difficult. haidi: difficult or impossible depending upon what you are looking at is the property market crisis continues to deepen. i love this story -- i should not say all of the story because it is obviously distressing, you have some analysts saying this is a unanalyzable area, it is a

black box for investors. >> that is a great quote from my colleague's interview. how do you analyze a market where this has been a difficult market to analyze for quite a few months now because of this year-sized of hidden debt, and also the difficulty in looking at a balance sheet when you did not have the earnings reports. those were delayed for months at a months, and some companies have not posted there earnings report. you had to recalibrate how you looked at the sector, the old ways of modeling earnings and evaluations no longer applied. it is a black box, because you do not know when the latest support measures may come but you also do not know where the latest domino is going to fall. a previously long-held assumption about the market

state that developers would be safer or that the government would step into really make sure that the crisis does not become systemic, those are being let go. to trade this market, it is an incredibly difficult one to price and value, and it has lost a lot of money for a lot of people. kathleen: moving on to qualcomm, the big story, shares scrubbing the spotlight, plunging after giving a weaker forecast than expected. nobody blaming covid lockdowns intranet -- the company blaming covid lockdowns. >> we have got qualcomm, the biggest maker of processors for smartphones. they are concerned about a continued downturn in demand. that means it is bigger than a qualcomm issue. there are planning for a continued decline in the

smartphone market. fiscal revenue at least $2 billion less than expected. that helps to explain the sharp drop, shares down as much as 8.5%. earnings will be 245 a share best. on the conference call qualcomm said it is coping with the slowdown partly through a hiring freeze. they will take more cost-cutting actions if needed. they said the build up of extra inventory, the chip glut may take two quarters to work through. qualcomm has mentioned blamed the macroeconomic environment, so it ends in china for weakening. they are one of the latest companies to see a consumer downturn in demand.

they had earlier just three months ago/there projections for smartphone shipments. you are looking at suppliers, year-to-date they have already had a tough road, qualcomm down 38%. the only silver lining is the company expected apple to start replacing most of its qualcomm 5g funds. apple will continue to rely on qualcomm throughout 2023. also on the conference call company saying china business expanding despite the new rules and restrictions. haidi: su keenan there. more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

haidi: this is what we are seeing when it comes to trading, inflow of trading for seoul, japan is closed for a public holiday with your political tensions with another missile fired by north korea as well as asian stocks really slumping after jay powell said the fed would raise interest rates more than previously anticipated. this is bloomberg. ♪

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